Bitcoin [BTC] has been showing stronger performance than gold since November, with an analyst predicting a potential additional 122% surge compared to the global reserve asset.
An analyst and trader well-known for his technical chart analysis, Peter Brandt, envisions a scenario where 89 ounces of gold could be required to purchase a single BTC coin.
Brandt’s forecast is grounded on the bullish formation of a cup and handle pattern on the BTC/gold ratio chart.
Bitcoin: The Next Global Reserve Currency?
Starting from November, BTC has exhibited a 60% superior performance when compared to gold, with the BTC/GLD ratio climbing from 25 to 40. This exceptional performance by BTC was further fueled by the pro-crypto stance of the newly elected US President, Donald Trump.
One of the promises made by the incoming administration was to establish a national Bitcoin reserve, a move that many experts in the market anticipate could happen on the very first day.
Jack Mallers, CEO of Strike, revealed that the president-elect was considering issuing an executive order to create a BTC reserve on the first day in office.
If this materializes, it could accelerate Brandt’s projected breakout target of 89 on the BTC/gold ratio, implying a value of around 230K per BTC once reached.
Current prediction markets are indicating a 35% likelihood of Donald Trump establishing a BTC reserve within the initial 100 days of his presidency.
These odds represent a 10% increase from the previous week, suggesting a growing optimism within the market regarding this potential development. If realized, Bitcoin could emerge as a formidable rival to gold as a global reserve asset.
While the achievement of Brandt’s $230K per BTC goal in this market cycle is uncertain, many asset managers have set a price target within the range of $150K-$200K for this cycle.
At present, BTC has witnessed a record high of $106.6K and was valued at $105K prior to the Federal Reserve’s interest rate decision scheduled for December 18th.